Thursday, October 30, 2014

Nonconfirmation

Today, the DJIA made a new recovery high with the help from Visa. The DJT closed with a loss and this resulted in a non-confirm new recovery high for the DJIA. The other market index that did not make a new recovery high today was the Nasdaq 100, NDX.

Although some of the market breadth indicators have bounced back to the level when the market was at record high territory back in September, but those levels are a reflection of a weakening market. Therefore to make an assertion that the market has regain its stature to begin another uptrend is ill-conceived at this time. Instead, one should be prepare for the market to possibly make an abrupt turn downward as the momentum that have caused the market to gain 7% in the last ten trading sessions begin to wane.

DJIA:

(click on the chart to enlarge)




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